A Sears Replacement Agreement is a much simpler, direct warranty than the Master Protection Agreement. It is usually offered on cheaper electronics, such as phones, DVD players, VCRs, digital cameras, and so on.
Essentially, it is a 2 year guarantee that the product you just bought will work. If it breaks for any reason, you just bring the thing back and we'll give you a new one. If we don't have that one in stock, we give you the next model up (meaning: better than the one you had before) for free.
The cost is usually 15% of the total cost of the product, to a minimum of 3 dollars.
In my experience, they're quite worth it. An extra dollar or two is all you're going to pay for a replacement on whatever electronic device you destroyed (due to misuse, negligence, and so on). Our department is usually pretty lax when it comes to replacements. We've seen DVD players split in half, right down the middle. Obviously not the fault of the manufacturer, but we replaced it nevertheless. And you never know when you're doing to drop that expensive digital camera .
Not nearly as hyped to salesmen as Master Protection Agreements, but still important for the company. Another pure profit category, but this one has a minimum of hassle attached to it. Plus, it makes your favorite salesman look good on paper.